In connection with our corporate newsletter of August 14, 2013, on August 20, 2013 the Democratic Revolution Party (“PRD”) formally presented before the Permanent Commission of the Mexican Congress a constitutional reform bill in order to amend the existing energy legal framework set forth in the Mexican Constitution (the “Reform”). It is expected that the Reform will be discussed in the Senate once the ordinary session of Congress begins on September 1, 2013.
Below please find the main points of the Reform:
- Amending the Petroleos Mexicanos (“Pemex”) tax regime.
- Giving Pemex budget independence.
- Giving Pemex management autonomy.
- Strengthening the Ministry of Energy and the National Hydrocarbons Commission.
- Establishing rates, prices and subsidies for fuels and electricity in order to provide equitable access.
- Converting the Oil Income Stabilization Fund into a financial entity.
- Promoting the investigation and development of technology.
- Promoting energy transition, environmental protection and sustainable development.